Leases

12 Months Ended

Dec. 31, 2022

9. LEASES

As Lessee

We have entered into ground leases for portions of the land at Springfield Town Center and Plymouth Meeting Mall. We have also entered into an office lease for our headquarters location, as well as vehicle, solar panel and equipment leases as a lessee. The initial terms of these agreements generally range from three to 40 years, with certain agreements containing extension options for up to an additional 60 years. Upon lease execution, the Company measures a liability for the present value of future lease payments over the noncancellable period of the lease and any renewal option period we are reasonably certain of exercising. Certain agreements require that we pay a portion of reimbursable expenses such as CAM, utilities, insurance and real estate taxes. These payments are not included in the calculation of the lease liability and are presented as variable lease costs.

Our leases do not provide a readily determinable implicit interest rate; therefore, we estimate our incremental borrowing rate to calculate the present value of remaining lease payments. In determining our incremental borrowing rate, we considered the lease term, market interest rates and estimates regarding our implied credit rating using market data with adjustments to determine an appropriate incremental borrowing rate.

The following table presents additional information pertaining to the Company’s leases:


	Year Ended December 31,
	For the Year Ended December 31, 2022								For the Year Ended December 31, 2021
(in thousands of dollars)	Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total		Solar Panel Leases		Ground Leases		Office, equipment, and vehicle leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	808	$	—	$	—	$	808	$	809	$	—	$	—	$	809
Interest on lease liabilities		239		—		—		239		242		—		—		242
Operating lease costs		—		2,342		250		2,592		—		2,155		1,493		3,648
Variable lease costs		—		183		853		1,036		—		180		149		329
Total lease costs	$	1,047	$	2,525	$	1,103	$	4,675	$	1,051	$	2,335	$	1,642	$	5,028

Other information related to leases as of and for the years ended December 31, 2022 and 2021 are as follows:


(in thousands of dollars)	2022			2021
Cash paid for the amounts included in the measurement of lease liabilities
Operating cash flows used for finance leases	$	238		$	242
Operating cash flows used for operating leases	$	2,612		$	2,721
Financing cash flows used for finance leases	$	754		$	750
Weighted average remaining lease term-finance leases (months)		63			75
Weighted average remaining lease term-operating leases (months)		283			291
Weighted average discount rate-finance leases		4.38	%		4.36	%
Weighted average discount rate-operating leases		6.46	%		6.43	%

Future payments against lease liabilities as of December 31, 2022 are as follows:


(in thousands of dollars)	Finance leases			Operating leases			Total
2023	$	985		$	2,556		$	3,541
2024		950			2,471			3,421
2025		929			2,428			3,357
2026		926			2,429			3,355
2027		859			2,450			3,309
Thereafter		288			46,208			46,496
Total undiscounted lease payments		4,937			58,542			63,479
Less imputed interest		(536	)		(30,285	)		(30,821	)
Total lease liabilities	$	4,401		$	28,257		$	32,658

Lease liabilities are included with accrued expenses and other liabilities in the consolidated balance sheets.

As Lessor

As of December 31, 2022, the fixed contractual lease payments, including minimum rents and fixed CAM amounts, to be received over the next five years pursuant to the terms of noncancellable operating leases with initial terms greater than one year are included in the table below. The amounts presented assume that no leases are renewed and no renewal options are exercised. Additionally, the table does not include variable lease payments that may be received under certain leases for percentage rents or the reimbursement of operating costs, such as common area expenses, utilities, insurance and real estate taxes. These variable lease payments are recognized in the period when the applicable expenditures are incurred or, in the case of percentage rents, when the sales data is made available. Except for utility reimbursements, the fixed and variable lease payments are included with lease revenue in the consolidated statements of operations. Utility reimbursements are included within expense reimbursements as a separate line item in the consolidated statement of operations as their pattern of transfer is not aligned with the other payments.


(in thousands of dollars)
For the Year Ending December 31,
2023	$	238,875
2024		209,425
2025		171,344
2026		140,934
2027		112,925
Thereafter		295,445
	$	1,168,948

The disaggregation of fixed lease revenue and variable lease revenue for the year ended December 31, 2022 is as follows:


	For the Year Ended December 31,
(in thousands of dollars)	2022
Fixed lease revenue	$	209,693
Variable lease revenue		62,058
Total lease revenue	$	271,751